Date:24/04/2006 URL: http://www.thehindubusinessline.com/2006/04/24/stories/2006042400270600.htm

Back Logistics costs

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A survey on probable efficiency that can be achieved by logistics service providers by entering into collaboration with internal and external partners reveals potential pitfalls which directly impact the cost of transportation. The major area of potential savings would be during transportation (pick up, in-transit and delivery), followed by the pre- and post-transportation processes. Logistics are becoming complex, with the delays mainly occurring in pick-ups and deliveries.

As a result, shippers, carriers and others run the risk of incurring high costs including of penalties, transportation and an overall increase in delivery costs across the supply chain. A large number of respondents identify improved communication network as an important area for potential cost reduction while many others feel that the potential for cost savings in transportation lies in empty haulage costs.